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s wage agreements with the workers' union. As a result, even a low-skilled blue-collar worker at the company earned as much as Rs 10,000 per month. This increased overall employee costs. According to analysts, this was alarming because since 1996, Titan had neither made any fresh recruitment nor replaced close to 200 supervisory and managerial-level employees who left in the same period.

However, the biggest factor that swung the decision in favour of outsourcing was the fact that Titan was not being able to meet the onslaught of the unorganized sector for the first time. Since the company decided to focus on generating volumes from low-end mass products, it had come in direct competition with players in the unorganized market. With cheaper Chinese imports flooding the Indian market, Titan realized that the complete technology of making watches, from hand-plating technology to manufacturing cases, was easily available at prices much lower than what the Hosur factory could ever deliver. According to a former company manager, 'The extra costs in the system aren't helping in differentiating the brand. Today, even unique elements of design are being easily copied at a lower cost.

外包与竞争优势 OUTSOURCING AND COMPETATIVE ADVANTAGE

Outsourcing, once used mainly for downsizing and cost reductions at major corporations, should be used as a strategic tool to deliver a forceful impact on corporate growth and financial stability. By outsourcing non-essential work, the corporation can free valuable resources and focus on its areas of competitive advantage. To achieve that result, the corporation must know its core competencies, the type of work within the organization, and manage the outsourcing process.

Core competency can be defined as the integration of technologies, constituent skills, and the collective learning that sustains the health of the enterprise and serves as a base for the creation of new businesses in the future.  These competencies form units of competitive advantage. The identified competencies (usually between five to eight ) create distinctiveness for the enterprise in the products and services as seen by the end-users, and provide differentiation from competition.  It is a must that senior management fully understands the enterprises' competencies before undertaking strategic outsourcing for competitive advantage.

For the United States, the use of outsourcing has spread from national to global.  For instance, in 1993, an estimated 85% of all business outsourcing was conducted in the United States for U.S. based companies. Much of the remaining  outsourcing activity was provided in Canada. But that situation has changed. Today, nearly half of all outsourcing is conducted beyond U.S. borders; however, much of the outsourcing is for North American companies with outsourcing experience on this continent.

In 1996 it was estimated that American companies spent roughly $100 billion on outsourcing; the projected growth rate will take that spending to $300 billion by 2001. The statistics for corporate use of outsourcing implies substantial opportunities for future growth. A survey previously done by a recognized financial institution found that wh本论文由英语论文网提供整理，提供论文代写，英语论文代写，代写论文，代写英语论文，代写留学生论文，代写英文论文，留学生论文代写相关核心关键词搜索。